Transaction Characteristics

Loan amount $400,000, property value $500,000, single family home purchased as permanent residence, borrower’s FICO score 800, lock period 60 days, and borrower escrows taxes and insurance.

Meaning of "Best" Interest Rates

The interest rates shown in the table are the "best" in two senses. First, the transaction characteristics (high credit score, large down payment, etc) are those to which lenders provide their best pricing. Second, we take the lowest of the prices quoted by Certified Network Lenders.

The steps in the calculation procedure for each mortgage type are as follows.

1. For each lender we find the interest rate closest to zero total lender fees.
2. Using the fees at that rate, we calculate the APR.
3. The lowest APR from among the lenders is the selected rate.